A recent letter was sent from OnLive's assignee to their creditors which revealed the company and its assets were sold for just $4.8 million. The document reveals that the sale occurred a few days before massive layoffs took place in the streaming company.
OL2 was created August 14th by investor Gary Lauder. He purchased most of the assets and intellectual property to allow the company to remain operational with little disruption.
OnLive reportedly had $18.7 million in debt when Lauder purchased the firm not inclusive of future leases or contractual obligations. It is believed that creditors will receive around $0.26 for every dollar they are due.
OnLive also went through an Assignment for the Benefit of Creditors. This process occurs when a company transfers all of its assets to another company or investor. The new owner is responsible for getting the most money they can, back to the investors, which for OnLive includes AT&T, British Telecom, Autodesk and others.
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